Firy Inc. (NYSE: FIRY) (“FIRY”) today provided an update on proceedings that were initiated by Papaya Gaming Ltd. and its U.S. subsidiary (together: “Papaya”) pursuant to the Israeli Insolvency Act in the District Court of Tel Aviv-Jaffa, in which FIRY’s wholly owned subsidiary, Skillz Platform Inc. (“Skillz”), is Papaya’s largest creditor.

On August 26, 2026, Judge Lushi-Abudi rejected Papaya’s motion to convene creditors’ meetings in order to vote on its proposed debt settlement and stated that Papaya should strengthen its proposed creditor repayment plan that currently relies only on operating profits, with the risks thereto, without any securities, or equity contribution. Therefore, the court stated that Papaya should improve its proposed debt settlement by adding funding beyond just operating profits.

At the hearing that took place on August 25, the Judge mentioned that the proposal could also be improved by increasing the amount paid into the arrangement following its approval, using funds that Papaya would raise through a rights offering, the entry of an investor, or another means. Judge Lushi-Abudi appointed Attorney Gil Oren of the firm Arnon, Tadmor-Levy as an arrangement manager, whose role is to work with Papaya and its creditors to formulate the improved plan. The Israeli proceeding remains subject to a temporary 45-day pause on collection efforts (beginning on August 3, 2026) while that work proceeds.

Papaya told the court that it holds approximately $151 million in cash. Its counsel also represented that the business remains profitable, and Papaya’s motions noted gross margins above 90% in recent years.

Papaya’s initial proposal contemplated funding a court-supervised fund from the profits of its continuing operations over six and a half years. However, the court held that relying on operating profits alone was insufficient and stated that the debt settlement should be revised, inter alia, by including additional sources of capital. During the hearing, the Judge suggested that it is a possibility that within the revised debt settlement, the managers and shareholders of Papaya that received dividends would contribute capital of their own.

Per Papaya’s attorneys at the hearing, the company distributed a $10 million dividend at the end of 2025.

The Israeli court also stated within the hearing that it would not address Papaya’s arguments regarding the U.S. judgment against it, and that usually the likelihood that a well-reasoned judgment would be overturned on appeal is low.

In April 2026, a unanimous federal jury found Papaya liable for false advertising under the federal Lanham Act and the New York General Business Law and awarded Skillz $420 million, marking the largest false advertising jury verdict in U.S. history. On July 27, 2026, the U.S. District Court for the Southern District of New York ordered Papaya to pay Skillz $719 million in disgorgement of Papaya’s unjust profits from false advertising, in lieu of the jury’s award, plus approximately $10 million in attorney’s fees and certain costs. The court denied all of Papaya’s post-trial motions challenging the verdict.

Papaya has said it intends to appeal the judgment to the U.S. Court of Appeals for the Second Circuit but has not yet posted a bond securing the judgment. On August 3, Papaya petitioned the U.S. Bankruptcy Court for the District of Delaware under Chapter 15 of the U.S. Bankruptcy Code to recognize the Israeli insolvency proceeding. On August 9, that court granted temporary relief pausing certain collection efforts against Papaya’s U.S. assets while it considers the petition.

Skillz intends to continue asserting its rights as Papaya’s largest creditor in both countries and to pursue collection of the full judgment amount. However, no assurance can be given as to the timing or amount of any ultimate recovery.

For more information: Israel: Insolvency Case No. [87154-07-26], Papaya Gaming Ltd. and Papaya Gaming Inc., District Court of Tel Aviv-Jaffa, before Judge Iris Lushi-Abudi; decision of August 26, 2026; hearing of August 25.

United States: Skillz Platform Inc. v. Papaya Gaming, Ltd., No. 1:24-cv-01646 (DLC) (S.D.N.Y.), opinion and order filed July 27, 2026 (ECF No. 1004); In re Papaya Gaming Ltd., No. 26-11217 (Bankr. D. Del.).

About Firy Inc.

FIRY is a global holding company built to fuel business potential. Through its growing portfolio, including Skillz, RZR, and Beamable, FIRY operates at the intersection of content, identity, commerce, and performance marketing. By leveraging first-party data, enterprise-scale infrastructure, and scalable operating systems, FIRY enables scalable growth while maintaining a disciplined focus on capital efficiency and long-term value creation.

About Skillz (a FIRY company)

Skillz is a leading mobile games platform dedicated to bringing out the best in everyone through competition. The Skillz platform helps developers create multi-million-dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of tournaments for millions of mobile players worldwide, with the goal of building the home of competition for all. Skillz has been recognized by Fast Company’s Best Workplaces for Innovators, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, Fast Company’s Most Innovative Companies, and the Inc. 5000 list of fastest-growing companies in America. For more information, visit www.skillz.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding the litigation with Papaya Gaming, the judgment entered against Papaya Gaming, any appeal, the Israeli court proceeding and any repayment plan formulated in it, the related proceeding in the United States, the timing and amount of any recovery, and our strategy. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in FIRY’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 31, 2026 and in our subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. FIRY undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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